Some countries have exchange rate policies that lie somewhere between fixed and floating exchange rates, such as rates that are managed by the government to avoid wide swings.

Question

Quizplus · Accepted Answer

This is true. Some countries have a managed exchange rate policy, also known as a semi-fixed exchange rate, where the government intervenes in the foreign exchange market to keep the exchange rate within a certain band or range. This allows some flexibility while also providing stability.

Some Countries Have Exchange Rate Policies That Lie Somewhere Between